Light (LIGT3) Q1 2025 earnings summary

Executive summary

• Achieved consolidated net income of R$419 million in Q1 2025, reversing a loss from the prior year, with the best first-quarter performance since 2015.

• Net revenues reached R$3.7 billion, up between 10% and 13% year-over-year.

• Cash position improved to R$3.6 billion, an increase of R$500 million since December 2024, supported by a court-mandated recovery plan.

• Net debt decreased to R$4.2 billion, down 52–55% year-over-year, reflecting successful debt restructuring.

• Company operated under court-supervised reorganization, with main debt restructuring actions completed and ongoing measures to finalize the plan.

Financial highlights

• Adjusted EBITDA rose to R$579 million in Q1 2025, up 94% year-over-year, with distribution EBITDA at R$471 million, up nearly 259–300% year-over-year.

• Operating cash generation increased, with net cash from operating activities at R$758.1 million, and CAPEX grew 65–71% year-over-year to R$288–296 million.

• Net debt/EBITDA ratio improved significantly due to debt restructuring and higher cash balances.

• Generation and trading EBITDA declined 34–35% year-over-year due to contract losses and higher replacement costs.

• Collection rate in Distribution reached a record 98.6% in the 12 months to March 2025.

Outlook and guidance

• Ongoing focus on operational efficiency, cash conservation, loss reduction, and maintaining high collection rates.

• Continued execution of the Judicial Reorganization Plan, including a reverse auction for early bond repayment and a planned capital increase.

• Awaiting ANEEL's decision on concession renewal, expecting a sustainable outcome.

• Confident in continued growth for Lightcom and in becoming a benchmark for clean energy solutions.

• Strategic investments in infrastructure and technology to sustain quality improvements and operational reliability.